[Congressional Record Volume 146, Number 21 (Wednesday, March 1, 2000)]
[Senate]
[Pages S1039-S1042]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          NATIONAL SUSTAINABLE FUELS AND CHEMICALS ACT OF 1999

  On February 29, 2000, the Senate amended and passed S. 935, as 
follows:

                                 S. 935

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
         TITLE I--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Biomass Research and 
     Development Act of 2000''.

     SEC. 102. FINDINGS.

       Congress finds that--
       (1) conversion of biomass into biobased industrial products 
     offers outstanding potential for benefit to the national 
     interest through improved strategic security and balance of 
     payments, healthier rural economies, improved environmental 
     quality, near-zero net greenhouse gas emissions, technology 
     export, and sustainable resource supply;
       (2) the key technical challenges to be overcome in order 
     for biobased industrial products to be cost competitive are 
     finding new technology and reducing the cost of technology 
     for converting biomass into desired biobased industrial 
     products;
       (3) biobased fuels, such as ethanol, have the clear 
     potential to be sustainable, low cost, and high performance 
     fuels that are compatible with both current and future 
     transportation systems and provide near zero net greenhouse 
     gas emissions;
       (4) biobased chemicals--
       (A) can provide functional replacements for essentially all 
     organic chemicals that are currently derived from petroleum; 
     and
       (B) have the clear potential for environmentally benign 
     product life cycles;
       (5) biobased power can provide environmental benefits, 
     promote rural economic development, and diversify energy 
     resource options;
       (6) many biomass feedstocks suitable for industrial 
     processing show the clear potential for sustainable 
     production, in some cases resulting in improved soil 
     fertility and carbon sequestration;
       (7)(A) grain processing mills are biorefineries that 
     produce a diversity of useful food, chemical, feed, and fuel 
     products; and
       (B) technologies that result in further diversification of 
     the range of value-added biobased industrial products can 
     meet a key need for the grain processing industry;
       (8)(A) cellulosic feedstocks are attractive because of 
     their low cost and widespread availability; and
       (B) research resulting in cost-effective technology to 
     overcome the recalcitrance of cellulosic biomass would allow 
     biorefineries to produce fuels and bulk chemicals on a very 
     large scale, with a commensurately

[[Page S1040]]

     large realization of the benefit described in paragraph (1);
       (9) research into the fundamentals to understand important 
     mechanisms of biomass conversion can be expected to 
     accelerate the application and advancement of biomass 
     processing technology by--
       (A) increasing the confidence and speed with which new 
     technologies can be scaled up; and
       (B) giving rise to processing innovations based on new 
     knowledge;
       (10) the added utility of biobased industrial products 
     developed through improvements in processing technology would 
     encourage the design of feedstocks that would meet future 
     needs more effectively;
       (11) the creation of value-added biobased industrial 
     products would create new jobs in construction, 
     manufacturing, and distribution, as well as new higher-valued 
     exports of products and technology;
       (12)(A) because of the relatively short-term time horizon 
     characteristic of private sector investments, and because 
     many benefits of biomass processing are in the national 
     interest, it is appropriate for the Federal Government to 
     provide precommercial investment in fundamental research and 
     research-driven innovation in the biomass processing area; 
     and
       (B) such an investment would provide a valuable complement 
     to ongoing and past governmental support in the biomass 
     processing area; and
       (13) several prominent studies, including studies by the 
     President's Council of Advisors on Science and Technology and 
     the National Research Council--
       (A) support the potential for large research-driven 
     advances in technologies for production of biobased 
     industrial products as well as associated benefits; and
       (B) document the need for a focused, integrated, and 
     innovation-driven research effort to provide the appropriate 
     progress in a timely manner.

     SEC. 103. DEFINITIONS.

       In this title:
       (1) Advisory committee.--The term ``Advisory Committee'' 
     means the Biomass Research and Development Technical Advisory 
     Committee established by section 106.
       (2) Biobased industrial product.--The term ``biobased 
     industrial product'' means fuels, commercial chemicals, 
     building materials, or electric power or heat produced from 
     biomass.
       (3) Biomass.--The term ``biomass'' means any organic matter 
     that is available on a renewable or recurring basis, 
     including agricultural crops and trees, wood and wood wastes 
     and residues, plants (including aquatic plants), grasses, 
     residues, fibers, and animal wastes, municipal wastes and 
     other waste materials.
       (4) Board.--The term ``Board'' means the Biomass Research 
     and Development Board established by section 105.
       (5) Initiative.--The term ``Initiative'' means the Biomass 
     Research and Development Research Initiative established 
     under section 107.
       (6) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given 
     that term in section 1201(a) of the Higher Education Act of 
     1965 (20 U.S.C. 1141(a)).
       (7) National laboratory.--The term ``national laboratory'' 
     means a facility or group of facilities owned, leased, or 
     operated by a Federal agency (including a contractor of the 
     Federal agency) for the performance of research, development, 
     or engineering.
       (8) Point of contact.--The term ``point of contact'' means 
     a point of contact designated under section 104(d).
       (9) Processing.--The term ``processing'' means the 
     derivation of biobased industrial products from biomass, 
     including--
       (A) feedstock production;
       (B) harvest and handling;
       (C) pretreatment or thermochemical processing;
       (D) fermentation;
       (E) catalytic processing;
       (F) product recovery; and
       (G) coproduct production.

     SEC. 104. COOPERATION AND COORDINATION IN BIOMASS RESEARCH 
                   AND DEVELOPMENT.

       (a) In General.--The Secretary of Agriculture and the 
     Secretary of Energy shall cooperate with respect to, and 
     coordinate, policies and procedures that promote research and 
     development leading to the production of biobased industrial 
     products.
       (b) Purpose.--The purpose of the cooperation and 
     coordination shall be to--
       (1) understand the key mechanisms underlying the 
     recalcitrance of biomass for conversion into biobased 
     industrial products;
       (2) develop new and cost-effective technologies that would 
     result in large-scale commercial production of low cost and 
     sustainable biobased industrial products;
       (3) ensure that biobased industrial products are developed 
     in a manner that enhances their economic, energy security, 
     and environmental benefits; and
       (4) promote the development and use of agricultural and 
     energy crops for conversion into biobased industrial 
     products.
       (c) Areas.--In carrying out this title, the Secretary of 
     Agriculture and the Secretary of Energy, in consultation with 
     heads of appropriate departments and agencies, shall promote 
     research and development to--
       (1) advance the availability and widespread use of energy 
     efficient, economically competitive, and environmentally 
     sound biobased industrial products in a manner that is 
     consistent with the goals of the United States relating to 
     sustainable and secure supplies of food, chemicals, and fuel;
       (2) ensure full consideration of Federal land and land 
     management programs as potential feedstock resources for 
     biobased industrial products; and
       (3) assess the environmental, economic, and social impact 
     of production of biobased industrial products from biomass on 
     a large scale.
       (d) Points of Contact.--
       (1) In general.--To coordinate research and development 
     programs and activities relating to biobased industrial 
     products that are carried out by their respective 
     Departments--
       (A) the Secretary of Agriculture shall designate, as the 
     point of contact for the Department of Agriculture, an 
     officer of the Department of Agriculture appointed by the 
     President to a position in the Department before the date of 
     the designation, by and with the advice and consent of the 
     Senate; and
       (B) the Secretary of Energy shall designate, as the point 
     of contact for the Department of Energy, an officer of the 
     Department of Energy appointed by the President to a position 
     in the Department before the date of the designation, by and 
     with the advice and consent of the Senate.
       (2) Duties.--The points of contact shall jointly--
       (A) assist in arranging interlaboratory and site-specific 
     supplemental agreements for research, development, and 
     demonstration projects relating to biobased industrial 
     products;
       (B) serve as cochairpersons of the Board;
       (C) administer the Initiative; and
       (D) respond in writing to each recommendation of the 
     Advisory Committee made under section 106.

     SEC. 105. BIOMASS RESEARCH AND DEVELOPMENT BOARD.

       (a) Establishment.--There is established the Biomass 
     Research and Development Board to coordinate programs within 
     and among departments and agencies of the Federal Government 
     for the purpose of promoting the use of biobased industrial 
     products by--
       (1) maximizing the benefits deriving from Federal grants 
     and assistance; and
       (2) bringing coherence to Federal strategic planning.
       (b) Membership.--The Board shall consist of:
       (1) The point of contact of the Department of Energy 
     designated under section 104(d)(1)(B), who shall serve as 
     cochairperson of the Board.
       (2) The point of contact of the Department of Agriculture 
     designated under section 104(d)(1)(A), who shall serve as 
     cochairperson of the Board.
       (3) A senior officer of each of the following agencies who 
     is appointed by the head of the agency and who has a rank 
     that is equivalent to the points of contact:
       (A) The Department of the Interior.
       (B) The Environmental Protection Agency.
       (C) The National Science Foundation.
       (D) The Office of Science and Technology Policy.
       (4) At the option of the Secretary of Agriculture and the 
     Secretary of Energy, other members appointed by the 
     Secretaries (after consultation with members described in 
     paragraphs (1) through (3)).
       (c) Duties.--The Board shall--
       (1) coordinate research, development, and demonstration 
     activities relating to biobased industrial products--
       (A) between the Department of Agriculture and the 
     Department of Energy; and
       (B) with other departments and agencies of the Federal 
     Government; and
       (2) provide recommendations to the points of contact 
     concerning administration of this title.
       (d) Funding.--Each agency represented on the Board is 
     encouraged to provide funds for any purpose under this title.
       (e) Meetings.--The Board shall meet at least quarterly to 
     enable the Board to carry out the duties of the Board under 
     subsection (c).

     SEC. 106. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL ADVISORY 
                   COMMITTEE.

       (a) Establishment.--There is established the Biomass 
     Research and Development Technical Advisory Committee to--
       (1) advise the Secretary of Energy, the Secretary of 
     Agriculture and the points of contact concerning--
       (A) the technical focus and direction of requests for 
     proposals issued under the Initiative; and
       (B) procedures for reviewing and evaluating the proposals;
       (2) facilitate consultations and partnerships among Federal 
     and State agencies, agricultural producers, industry, 
     consumers, the research community, and other interested 
     groups to carry out program activities relating to the 
     Initiative; and
       (3) evaluate and perform strategic planning on program 
     activities relating to the Initiative.
       (b) Membership.--The Committee shall consist of the 
     following members appointed by the points of contact:
       (1) An individual affiliated with the biobased industrial 
     products industry.
       (2) An individual affiliated with an institution of higher 
     education who has expertise in biobased industrial products.

[[Page S1041]]

       (3) two prominent engineers or scientists from government 
     or academia who have expertise in biobased industrial 
     products.
       (4) An individual affiliated with a commodity trade 
     association.
       (5) An individual affiliated with an environmental or 
     conservation organization.
       (6) An individual associated with State government who has 
     expertise in biobased industrial products.
       (7) At the option of the points of contact, other members.
       (c) Duties.--The Advisory Committee shall--
       (1) advise the points of contact with respect to the 
     Initiative; and
       (2) evaluate whether, and make recommendations in writing 
     to the Board to ensure that--
       (A) funds authorized for the Initiative are distributed and 
     used in a manner that is consistent with the goals of the 
     Initiative;
       (B) the points of contact are funding proposals under this 
     title that are selected on the basis of merit, as determined 
     by an independent panel of scientific and technical peers; 
     and
       (C) activities under this title are carried out in 
     accordance with this title.
       (d) Meetings.--The Advisory Committee shall meet at least 
     quarterly to enable the Advisory Committee to carry out the 
     duties of the Advisory Committee under subsection (c).

     SEC. 107. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.

       (a) In General.--The Secretary of Agriculture and the 
     Secretary of Energy, acting through their respective points 
     of contact and in consultation with the Board, shall 
     establish and carry out a Biomass Research and Development 
     Initiative under which competitively-awarded grants, 
     contracts, and financial assistance are provided to, or 
     entered into with, eligible entities to carry out research on 
     biobased industrial products.
       (b) Purposes.--The purposes of grants, contracts, and 
     assistance under this section shall be to--
       (1) stimulate collaborative activities by a diverse range 
     of experts in all aspects of biomass processing for the 
     purpose of conducting fundamental and innovation-targeted 
     research and technology development;
       (2) enhance creative and imaginative approaches toward 
     biomass processing that will serve to develop the next 
     generation of advanced technologies making possible low cost 
     and sustainable biobased industrial products;
       (3) strengthen the intellectual resources of the United 
     States through the training and education of future 
     scientists, engineers, managers, and business leaders in the 
     field of biomass processing; and
       (4) promote integrated research partnerships among 
     colleges, universities, national laboratories, Federal and 
     State research agencies, and the private sector as the best 
     means of overcoming technical challenges that span multiple 
     research and engineering disciplines and of gaining better 
     leverage from limited Federal research funds.
       (c) Eligible Entities.--
       (1) In general.--To be eligible for a grant, contract, or 
     assistance under this section, an applicant shall be--
       (A) an institution of higher education;
       (B) a national laboratory;
       (C) a Federal research agency;
       (D) a State research agency;
       (E) a private sector entity;
       (F) a nonprofit organization; or
       (G) a consortium of 2 or more entities described in 
     subparagraphs (A) through (E).
       (2) Administration.--After consultation with the Board, the 
     points of contact, on behalf of the Board, shall--
       (A) publish annually 1 or more joint requests for proposals 
     for grants, contracts, and assistance under this section;
       (B) establish a priority in grants, contracts, and 
     assistance under this section for research that--
       (i) demonstrates potential for significant advances in 
     biomass processing;
       (ii) demonstrates potential to substantially impact scale-
     sensitive national objectives such as sustainable resource 
     supply, reduced greenhouse gas emissions, healthier rural 
     economies, and improved strategic security and trade 
     balances; and
       (iii) would improve knowledge of important biomass 
     processing systems that demonstrate potential for commercial 
     applications;
       (C) require that grants, contracts, and assistance under 
     this section be awarded competitively, on the basis of merit, 
     after the establishment of procedures that provide for 
     scientific peer review by an independent panel of scientific 
     and technical peers; and
       (D) give preference to applications that--
       (i) involve a consortia of experts from multiple 
     institutions; and
       (ii) encourage the integration of disciplines and 
     application of the best technical resources.
       (d) Uses of Grants, Contracts, and Assistance.--A grant, 
     contract, or assistance under this section may be used to 
     conduct--
       (1) research on process technology for overcoming the 
     recalcitrance of biomass, including research on key 
     mechanisms, advanced technologies, and demonstration test 
     beds for--
       (A) feedstock pretreatment and hydrolysis of cellulose and 
     hemicellulose, including new technologies for--
       (i) enhanced sugar yields;
       (ii) lower overall chemical use;
       (iii) less costly materials; and
       (iv) cost reduction;
       (B) development of novel organisms and other approaches to 
     substantially lower the cost of cellulase enzymes and 
     enzymatic hydrolysis, including dedicated cellulase 
     production and consolidated bioprocessing strategies; and
       (C) approaches other than enzymatic hydrolysis for 
     overcoming the recalcitrance of cellulosic biomass;
       (2) research on technologies for diversifying the range of 
     products that can be efficiently and cost-competitively 
     produced from biomass, including research on--
       (A) metabolic engineering of biological systems (including 
     the safe use of genetically modified crops) to produce novel 
     products, especially commodity products, or to increase 
     product selectivity and tolerance, with a research priority 
     on the development of biobased industrial products that can 
     compete in performance and cost with fossil-based products;
       (B) catalytic processing to convert intermediates of 
     biomass processing into products of interest;
       (C) separation technologies for cost-effective product 
     recovery and purification;
       (D) approaches other than metabolic engineering and 
     catalytic conversion of intermediates of biomass processing;
       (E) advanced biomass gasification technologies, including 
     coproduction of power and heat as an integrated component of 
     biomass processing, with the possibility of generating excess 
     electricity for sale; and
       (F) related research in advanced turbine and stationary 
     fuel cell technology for production of electricity from 
     biomass; and
       (3) research aimed at ensuring the environmental 
     performance and economic viability of biobased industrial 
     products and their raw material input of biomass when 
     considered as an integrated system, including research on--
       (A) the analysis of, and strategies to enhance, the 
     environmental performance and sustainability of biobased 
     industrial products, including research on--
       (i) accurate measurement and analysis of greenhouse gas 
     emissions, carbon sequestration, and carbon cycling in 
     relation to the life cycle of biobased industrial products 
     and feedstocks with respect to other alternatives;
       (ii) evaluation of current and future biomass resource 
     availability;
       (iii) development and analysis of land management practices 
     and alternative biomass cropping systems that ensure the 
     environmental performance and sustainability of biomass 
     production and harvesting;
       (iv) land, air, water, and biodiversity impacts of large-
     scale biomass production, processing, and use of biobased 
     industrial products relative to other alternatives; and
       (v) biomass gasification and combustion to produce 
     electricity;
       (B) the analysis of, and strategies to enhance, the 
     economic viability of biobased industrial products, including 
     research on--
       (i) the cost of the required process technology;
       (ii) the impact of coproducts, including food, animal feed, 
     and fiber, on biobased industrial product price and large-
     scale economic viability; and
       (iii) interactions between an emergent biomass refining 
     industry and the petrochemical refining infrastructure; and
       (C) the field and laboratory research related to feedstock 
     production with the interrelated goals of enhancing the 
     sustainability, increasing productivity, and decreasing the 
     cost of biomass processing, including research on--
       (i) altering biomass to make biomass easier and less 
     expensive to process;
       (ii) existing and new agricultural and energy crops that 
     provide a sustainable resource for conversion to biobased 
     industrial products while simultaneously serving as a source 
     for coproducts such as food, animal feed, and fiber;
       (iii) improved technologies for harvest, collection, 
     transport, storage, and handling of crop and residue 
     feedstocks; and
       (iv) development of economically viable cropping systems 
     that improve the conservation and restoration of marginal 
     land; or
       (4) Any research and development in technologies or 
     processes determined by the Secretary of Agriculture and the 
     Secretary of Energy, acting through their respective points 
     of contact and in consultation with the Board, to be 
     consistent with the purposes described in subsection (b) and 
     priorities described in subsection (c)(2)(B).
       (e) Technology and Information Transfer to Agricultural 
     Users.--
       (1) In general.--The Administrator of the Cooperative State 
     Research, Education, and Extension Service and the Chief of 
     the Natural Resources Conservation Service shall ensure that 
     applicable research results and technologies from the 
     Initiative are adapted, made available, and disseminated 
     through their respective services, as appropriate.
       (2) Report.--Not later than 5 years after the date of 
     enactment of this title, the Administrator of the Cooperative 
     State Research, Education, and Extension Service and the 
     Chief of the Natural Resources Conservation Service shall 
     report to the committees of Congress with jurisdiction over 
     the Initiative on the activities conducted by the services 
     under this subsection.
       (f) Authorization of Appropriations.--In addition to 
     funding provided for biomass research and development under 
     the general

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     authority of the Secretary of Energy to conduct research and 
     development and demonstration programs (which may also be 
     used to carry out this title), there are also authorized to 
     be appropriated $49,000,000 to the Department of Agriculture 
     for each of the fiscal years 2000 through 2005 to carry out 
     this title.

     SEC. 108. ADMINISTRATIVE SUPPORT AND FUNDS.

       (a) In General.--To the extent administrative support and 
     funds are not provided by other agencies under subsection 
     (b), the Secretary of Energy and the Secretary of Agriculture 
     may provide such administrative support and funds of the 
     Department of Energy and the Department of Agriculture to the 
     Board and the Advisory Committee as are necessary to enable 
     the Board and the Advisory Committee to carry out this title.
       (b) Other Agencies.--The heads of the agencies referred to, 
     or appointed under, paragraphs (3) and (4) of section 105(b) 
     may, and are encouraged to, provide administrative support 
     and funds of their respective agencies to the Board and the 
     Advisory Committee.

     SEC. 109. REPORTS.

       For each fiscal year that funds are made available to carry 
     out this title, the Secretary of Agriculture and the 
     Secretary of Energy shall jointly transmit to Congress a 
     detailed report on--
       (1) the status and progress of the Initiative, including a 
     certification from the Board that funds authorized for the 
     Initiative are distributed and used in a manner that is 
     consistent with the goals of the Initiative; and
       (2) the general status of cooperation and research efforts 
     carried out by each Secretary with respect to sustainable 
     fuels, chemicals, and electricity derived from biomass, 
     including a certification from the Board that the points of 
     contact are funding proposals that are selected on the basis 
     of merit, as determined by an independent panel of scientific 
     and technical peers.

     SEC. 110. SUNSET.

       This title and the authority conferred by this title shall 
     terminate on December 31, 2005.
 TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR ETHANOL RESEARCH PILOT 
                                 PLANT

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to construct a 
     Department of Agriculture corn-based ethanol research pilot 
     plant a total of $14,000,000 for fiscal year 2000 and 
     subsequent fiscal years.

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